Privacy Laws Can Keep Parents "In The Dark"

Parents, please make sure to take care of your student's estate planning before sending them off to college. Here's another reason why legal documents should be completed.

On March 8, 2009, University of Kansas Freshman Jason Wren died of alcohol poisoning in an off-campus fraternity house. He had moved there 11 days before after being evicted from his campus dorm, and seemingly did not provide “full disclosure” to his father when questioned about what led to his eviction.

His father called the university to learn of the details of what happened, and the school stated “We can’t tell you because of FERPA”.

FERPA is the Family Educational Rights and Privacy Act which was passed 35 years ago to keep adult student’s academic records private. Unfortunately it seems to be increasingly used to hide student activities.

Eventually Mr. Wren discovered that his son had been disciplined six times for alcohol violations, and his father is left wondering if he could have prevented his death were he notified of these problems.

Here at College Funding Relief, we suggest taking care of these issues before sending your student off to school. Discuss these issues with your child, and suggest they complete a written waiver of the FERPA “shroud of secrecy”.

At the same time, we strongly suggest that you and your newly minted adults consult with an estate planning attorney to create a Health Care Power of Attorney, Living Will, and HIPAA release to ensure that 1) parents can receive the child’s medical information if necessary, and 2) the parents are empowered to make their student’s medical decisions for them should they be incapacitated. Visit www.GolowinLegal.com for more information.

College Graduates Face Low Unemployment Rates

You already knew that getting a college education was important, but the Orlando Sentinel recently reported that “better educated workers fare better than those with less formal schooling – much better”.

Nationally, people with bachelor’s degrees are only facing a 4.4% unemployment rate, which is less than half the national average. However, people without a high school diploma are unable to find work at a 15% rate, which is six points higher than the national average.

Keep your eye on education!

Will College Students Be Hurt By Change In Ohio Financial Aid?

Under a proposed state budget for education, Ohio students attending lower-cost community colleges would not receive state aid. State money would only be allotted to those whose federal Pell Grants did not cover their educational expenses, cutting out funding for students attending lower priced community colleges.

Governor Ted Strickland argues that because of an increase in Pell grant awards (the cap will be increased $500, or from $4,850 to $5,350), and tuition freezes, community college students, whose tuition rates are an average of $5,100 cheaper than four-year schools, should be able to afford attendance without extra aid. One student says she uses the state aid money for books and living expenses, and would have to take a loan if it was cut. Many students attending community college already take out loans.

The governor’s proposal also includes a provision to give state need-based aid according to the type of school a student attends. Tuition for public schools in Ohio averages $10,000 while private school tuition averages $22,461 a year. This would give more flexibility in helping needy students, but would come at the expense of cutting the $34.5 million dollar Ohio Student Choice Grants program, which gives $660 to any Ohioan attending a private college in Ohio this would cut total state student aid by 46% and cost the 70,000 students attending private school in Ohio about 46 million dollars in financial aid. On average, private school students in Ohio receive about $5,000 in combined state and federal aid, but still have about $6000 of debt.

All the more reason to help your children prepare well for applying to college so that they can either qualify for merit-based aid, aid directly from the school. Visit the College Funding Relief website for guidance on the FAFSA, EFC and College Financial Aid.

Private School Deals

The May 2009 issue of Smartmoney writes about "The Private School Pinch", which explains how to get into private colleges and universities for maybe even less than state schools.

Neil Parmar, author, writes "many of the nation's 27,000 independent primary and secondary schools are scrambling to fill spots left by recession-struck families."

As a result, some of these schools are waiving fees, extending deadlines, discounting tuition or even lowering admissions standards. The biggest news of all is that they are now willing to negotiate with families even more than before.

While this article was written primarily with the focus upon pre-college education, I find the same holds true for college and university planning. We are now able to negotiate much more effectively and assist students in getting financial aid or money off tuition at an even greater rate.

Some suggestions that we often implement are:

1) Leverage multiple offers
2) Ask for and extension
3) Strike A Bargain

For help maximizing your families financial aid, while finding the best school for your child, contact me at www.Graduate4Less.com.

Biggest College Test Is Filling Out FAFSA Financial Aid Form

Tamar Lewin of the New York Times writes: "Most everyone agrees that something is very wrong with the six-page [FAFSA: Free Application for Federal Student Aid] federal form for families seeking help with college costs."

Created in 1992 to simplify applying for financial aid, it has become so intimidating -- with more than 100 questions -- that critics say it scares off the very families most in need, preventing some teenagers from going to college.

In addition, some families have begun paying for professional help with the Free Application for Federal Student Aid, known as the FAFSA. The situation indicates just how far awry the whole process has gone, experts say.

Lewin writes that "Last year, Congress ordered the form streamlined, but in the very same bill, it added seven new questions", and mentions that Secretary of Education, Arne Duncan, talked about the problem at his confirmation hearing, saying, "You basically have to have a Ph.D. to figure that thing [the FAFSA] out."

More families than ever are filing the forms this year, due to the recession and rising costs of college. As of last Sunday, the Department of Education had already received more than 2.2 million forms, 20 percent more than at this time last year.

Note: If you have a high school senior and you are waiting for your tax return in order to file the FAFSA, YOU'RE ALREADY LATE! "The form becomes available each year on Jan. 1, and counselors urge families to file early because some aid is first come, first served." The FAFSA should be filed on the first business day after January 1st of the student's senior year!

For professional help with not only completing and filing the FAFSA, but also maximizing your student's eligibility for financial aid and guidance on applying to and increasing the chance of admission, contact College Funding Relief, LLC today!